Givens Graphics Company was organized on January 1, 2008, by Sue Givens. At the end of the first 6 months of operations, the trial balance contained the following accounts.

Analysis reveals the following additional data.

1. The \($3,700\) balance in Supplies Expense represents supplies purchased in January. At June 30, \($1,300\) of supplies was on hand.

2. The note payable was issued on February 1. It is a 9%, 6-month note.

3. The balance in Insurance Expense is the premium on a one-year policy, dated March 1, 2008.

4. Consulting fees are credited to revenue when received. At June 30, consulting fees of \($1,500\) are unearned.

5. Graphic revenue earned but unrecorded at June 30 totals \($2,000.\) 

6. Depreciation is \($2,000\) per year.

Instructions

(a) Journalize the adjusting entries at June 30. (Assume adjustments are recorded every 6 months.) 

(b) Prepare an adjusted trial balance. 

(c) Prepare an income statement and owner's equity statement for the 6 months ended June 30 and a balance sheet at June 30.

Transcribed Image Text:

Debits Credits Cash $ 9,500 Accounts Receivable 14,000 Notes Payable Accounts Payable $ 20,000 9,000 Equipment 45,000 Sue Givens, Capital 22,000 Insurance Expense 1,800 Graphic Revenue 52,100 Salaries Expense 30,000 Consulting Revenue 6,000 Supplies Expense 3,700 Advertising Expense 1,900 Rent Expense 1,500 Utilities Expense 1,700 $109,100 $109,100